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REITs gained this week as the Senate approved the debt ceiling bill, enabling the country to avert its first ever default.
Also, several Federal Reserve officials have been saying they expect to skip a rate hike at the June meeting. The Fed “really should skip, not pause,” an interest-rate increase at the upcoming June 13-14 meeting as monetary policy is close to being restrictive “if not at that point right now,” Philadelphia Fed President Patrick Harker said.
Recent news strengthened the market sentiments surrounding REITs, with the FTSE Nareit All Equity REITs index rising by 3.33% from last week.
The broader real estate index also strengthened by 3.11% on a weekly basis, and the mortgage REITs index by 5.62%.
Comparatively, S&P 500 gained by a mere 1.83%.
YTD, the S&P 500 index has increased by 11.53%, while the equity REITs index has fallen by 1.29%
Hotel REITs were the biggest gainers of the week, with the subsector reporting a 5.73% increase from last week. Notably, the office subsector, which has lost 23.52% of its value YTD, was among the top 5 winning subsectors of the week.
Self storage was an outlier, having gained merely 0.38%.
Here is a look at the subsector performance:
